On Tuesday, the Indian stock market proved favorable for investors. The last hour of trading was particularly significant when news emerged that caused a rapid rise in both the Sensex and Nifty indices.
The Bombay Stock Exchange (BSE) showed an impressive increase in its Sensex index by more than 1100 points, surpassing the 73,000 mark. Meanwhile, the Nifty index of the National Stock Exchange (NSE) suddenly crossed the 22,700 mark, demonstrating a jump of more than 350 points.
Thanks to this strong growth in the stock market, investors were able to realize significant profits, earning over 400 million crore rupees.
Trading on the stock market on Tuesday began with some sluggishness. The BSE Sensex opened at 71,951, slightly above the previous close of 71,924. However, as trading progressed, the pace of Sensex growth increased. By noon, at half past two, the index was trading around 72,600, but then began to rise rapidly. In the end, the Sensex closed at 73,033.78, showing an increase of 1109 points or 1.54%.
The NSE Nifty followed the example of the Sensex. It opened at 22,364, which was identical to Monday's closing level (22,363). But its momentum also accelerated as trading volume increased. At the end of the session, NSE Nifty closed at 22,721.95, demonstrating a rise of 358 points or 1.60%.
The sharp surge in the last hour of trading allowed investors to make substantial profits. This is evidenced by the growth in the aggregate market capitalization of companies listed on the Bombay Stock Exchange. By the time trading closed on Tuesday, the BSE market capitalization stood at 470,07,567.40 crore rupees, compared to 465,91,974.21 recorded on the previous business day. According to calculations, investors earned 415,593 crore rupees.
The reason for this acceleration of Sensex and Nifty was news announced by Finance Minister Nirmala Sitharaman. During the event, she made an important statement regarding taxes on long-term capital gains (LTCG) and short-term capital gains (STCG). She emphasized the government's readiness to carefully listen to investor concerns and feedback regarding the LTCG structure.
This statement by the Finance Minister was perceived as a serious signal for investors and market stakeholders, especially considering the constant demands from investors and market experts for the abolition or revision of the LTCG tax before the budget. Earlier, under Budget-2024, the Modi government had increased the LTCG tax on stocks to 12.5%, which caused concern among some stock market participants.
Amidst the strong growth on Tuesday, several stocks showed outstanding performance, bringing significant profits to their owners. Among them, in the category of large BSE companies were HCL Tech Share (growth of 8.28%), TCS Share (growth of 6.59%), Tech Mahindra Share (growth of 4.90%), Infosys Share (growth of 4.44%), HUL Share (growth of 2.94%), and Trent Share (growth of 2.61%).
Additionally, in the mid-cap company category, there was growth in Mphasis Share (growth of 5.18%), Coforge Share (growth of 4.46%), Phonix Share (growth of 3.92%), and Persistent Share (growth of 3.86%).